Notes to Accounts of Remi Edelstahl Tubulars Ltd.

Mar 31, 2025

1.12 Provisions, Contingent Liabilities and Capital

Commitments

1.12.1 Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation.

1.12.2 The expenses relating to a provision is presented
in the Statement of Profit and Loss net of
reimbursements, if any.

1.12.3 Contingent liabilities are possible obligations
whose existence will only be confirmed by future
events not wholly within the control of the
Company, or present obligations where it is not
probable that an outflow of resources will be
required or the amount of the obligation cannot be
measured with sufficient reliability.

1.12.4 Contingent liabilities are not recognized in the
financial statements but are disclosed unless the
possibility of an outflow of economic resources is
considered remote.

1.13 Fair Value measurement

1.13.1 The Company measures certain financial
instruments at fair value at each reporting date.

1.13.2 Certain accounting policies and disclosures
require the measurement of fair values, for both
financial and non- financial assets and liabilities.

1.13.3 Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date in the principal or, in its
absence, the most advantageous market to which
the Company has access at that date. The fair
value of a liability also reflects its non-performance
risk.

1.13.4 The best estimate of the fair value of a financial
instrument on initial recognition is normally the
transaction price - i.e. the fair value of the
consideration given or received. If the Company
determines that the fair value on initial recognition
differs from the transaction price and the fair value
is evidenced neither by a quoted price in an active
market for an identical asset or liability nor based
on a valuation technique that uses only data
from observable markets, then the financial
instrument is initially measured at fair value,
adjusted to defer the difference between the fair
value on initial recognition and the transaction
price. Subsequently that difference is recognised
in Statement of Profit and Loss on an appropriate
basis over the life of the instrument but no later
than when the valuation is wholly supported by
observable market data or the transaction is closed
out.

1.14 Financial Assets

1.14.1 Initial recognition and measurement

Trade Receivables and debt securities issued are
initially recognised when they are originated. All
other financial assets are initially recognised when
the Company becomes a party to the contractual
provisions of the instrument. All financial assets
other than those measured subsequently at fair
value through profit and loss, are recognised
initially at fair value plus transaction costs that are
attributable to the acquisition of the financial asset.

1.14.2 Subsequent measurement

Subsequent measurement is determined with
reference to the classification of the respective
financial assets. Based on the business model
for managing the financial assets and the
contractual cash flow characteristics of the

financial asset, the Company classifies financial
assets as subsequently measured at amortised
cost, fair value through other comprehensive
income or fair value through profit and loss.

1.14.3 Impairment of financial assets

In accordance with Ind AS 109, the Company
applies Expected Credit Loss (“ECL”) model for
measurement and recognition of impairment loss
on the financial assets measured at amortised cost
and debt instruments measured at FVOCI.

Loss allowances on trade receivables are mea¬
sured following the ‘simplified approach’ at an
amount equal to the lifetime ECL at each reporting
date. The application of simplified approach does
not require the Company to track changes in credit
risk. Based on the past history and track records
the company has assessed the risk of default by
the customer and expects the credit loss to be
insignificant. In respect of other financial assets
such as debt securities and bank balances, the
loss allowance is measured at 12 month ECL only if
there is no significant deterioration in the credit risk
since initial recognition of the asset or asset is
determined to have a low credit risk at the reporting
date.

1.15 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in the Balance Sheet, if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis,
or to realise the assets and settle the liabilities
simultaneously.

1.16 Taxes on Income

1.16.1 Current Tax

Income-tax Assets and liabilities are measured at
the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that
are enacted or substantively enacted, by the end of
reporting period.

Current Tax items are recognised in correlation to
the underlying transaction either in the Statement
of Profit and Loss, other comprehensive income or
directly in equity.

1.16.2 Deferred tax

Deferred tax is provided using the Balance Sheet
method on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that
it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled,
based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting
date.

Deferred Tax items are recognised in correlation to
the underlying transaction either in the Statement
of Profit and Loss, other comprehensive income or
directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity
and the same taxation authority.

1.17 Earnings per share

Basic earnings per share are calculated by dividing the
profit or loss for the period attributable to equity
shareholders (after deducting preference dividends, if
any, and attributable taxes) by the weighted average
number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share,
the profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effect of
all dilutive potential equity shares.

1.18 Classification of Assets and Liabilities as Current and
Non-Current:

All assets and liabilities are classified as current or non¬
current as per the Company''s normal operating cycle
(determined at 12 months) and other criteria set out in
Schedule III of the Act.

1.19 Cash and Cash equivalents

- Cash and cash equivalents in the Balance Sheet include
cash at bank, cash, cheque, draft on hand and demand
deposits with an original maturity of less than three
months, which are subject to an insignificant risk of
changes in value.

For the purpose of Statement of Cash Flows, Cash and
cash equivalents include cash at bank, cash, cheque and
draft on hand. The Company considers all highly liquid
investments with a remaining maturity at the date of
purchase of three months or less and that are readily
convertible to known amounts of cash to be cash
equivalents.

1.20 Cash Flows

Cash flows are reported using the indirect method, where
by net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from
operating, investing and financing activities are
segregated.

37. Financial Risk Management
Risk management framework

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s business
activities are exposed to a variety of financial risks, namely liquidity risk, market risk, commodity risk and credit risk. The Company''s senior
management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company''s risk
management policies are established to identity and analyse the risk faced by the Company, to set and monitor appropriate risk limits and
controls periodically review the changes in market conditions and reflect the changes in the policy accothingly. The key risk and mitigating
actions are also placed before the Audit Committee of the Company.

The Company has exposure to the following risk arising from financial instruments.

A) Credit risk

B) Liquidity risk

C) Market risk and

D) Commodity risk
A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party fails to meet its financial obligations.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables amounting to Rs.1,653.52 Lakhs and Rs. 2,899.23 Lakhs as at
March 31,2025 and March 31,2024 respectively.

The demographic of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk
is managed through credit approvals, establishing credit limit and continuously monitoring the creditworthiness of customers to which
the Company grants credit in the normal course of business.

Cash and Cash Equivalents

The Company held cash and cash equivalents of Rs.175.28 Lakhs as at 31st March, 2025 (31st March, 2024 Rs.140.02 Lakhs).

B) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable time.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity management
framework for the management of the Company''s short, medium and long term funding and liquidity management requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Exposure to liquidity risk

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flow
as at the Balance sheet date.

C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates. The objective of market risk management is to
manage and control market risk exposures within parameters, while optimizing the return.

C-1 Foreign currency risk

The Company''s business is transacted in several currencies. Consequently, the Company is exposed to foreign exchange risk through its
sales in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the Company are significantly lower in
comparison to its imports.

The Company takes derivate financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange
rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and
may fluctuate substantially in future. Consequently, the results of the Company''s operation are adversely affected as the rupee appreciates/

depreciates against these currencies. There are no carrying amounts of the Company''s foreign currency dominated monetary assets and
monetary liabilities at the end of the reporting period.

C-2 Interest risk

There is interest risk relating to the Company''s borrowing on which interest is payable.

D) Commodity risk

Principal Raw Material for Company''s products is variety of Stainless Steel. Company sources its raw material requirement from
indigenous and international sources. Local market prices are also generally remains in sync with international market price scenario.
Volatility in nickel prices, currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the
world market affect the effective price and availability of stainless steel for the Company. Company effectively manages with availability of
material as well as price volatility through.

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy

AS PER OUR REPORT OF EVEN DATE

FOR SUNDARLAL, DESAI AND KANODIA, FOR AND ON BEHALF OF BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS

FRN-110560W

Sd/- Sd/-

^Sd/- (VISHWAMBHAR C.SARAF ) (RISHABH R. SARAF)

(MlIKLII.^B. ^DESAI) CHAIRMAN MANAGING DIRECTOR

^PARTNER DIN: 00161381 DIN: 00161435

Membership No.33978

Sd/- Sd/-

^{PLACE : MUMBAI} (VINOD C. JALAN) (HETAL H. JOSHI)

^DATED : ^{12th May}, ²⁰²⁵ CHIEF FINANCIAL OFFICER COMPANY SECRETARY

---

Mar 31, 2024

1.12 Provisions, Contingent Liabilities and Capital

Commitments

1.12.1 Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

1.12.2 The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.

1.12.3 Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability.

1.12.4 Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.

1.13 Fair Value measurement

1.13.1 The Company measures certain financial instruments at fair value at each reporting date.

1.13.2 Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities.

1.13.3 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.

1.13.4 The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.

1.14 Financial Assets

1.14.1 Initial recognition and measurement

Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.

1.14.2 Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, the

Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit and loss.

1.14.3 Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and recognition of impairment loss on the financial assets measured at amortised cost and debt instruments measured at FVOCI.

Loss allowances on trade receivables are measured following the ‘simplified approach’ at an amount equal to the lifetime ECL at each reporting date.The application of simplified approach does not require the Company to track changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

1.15 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

1.16 Taxes on Income

1.16.1 Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the end of reporting period.

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

1.16.2 Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

1.17 Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.18 Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or noncurrent as per the Company''s normal operating cycle (determined at 12 months) and other criteria set out in Schedule III of the Act.

1.19 Cash and Cash equivalents

- Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with an original maturity of less than three months, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.20 Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

36. Financial Risk Management Risk management framework

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk, commodity risk and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company''s risk management policies are established to identity and analyse the risk faced by the Company, to set and monitor appropriate risk limits and controls periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risk and mitigating actions are also placed before the Audit Committee of the Company.

The Company has exposure to the following risk arising from financial instruments.

A) Credit risk

B) Liquidity risk

C) Market risk and

D) Commodity risk A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party fails to meet its financial obligations.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs.2,899.23 Lakhs and Rs. 2,291.96 Lakhs as at March 31,2024 and March 31,2023 respectively.

The demographic of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limit and continuously monitoring the creditworthiness of customers to which the Company grants credit in the normal course of business.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

The Company uses an allowance matrix to measure the expected credit losses of trade receivables. The loss rates are computed using a ''roll rate'' method based on the probability of receivable progressing through successive stages of delinquency to write off.

The following table provides information about the exposure to credit risk for trade receivables.

Market risk is the risk that changes in market prices - such as foreign exchange rates. The objective of market risk management is to manage and control market risk exposures within parameters, while optimizing the return.

C-1 Foreign currency risk

The Company''s business is transacted in several currencies. Consequently, the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the Company are significantly lower in comparison to its imports.

The Company takes derivate financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and may fluctuate substantially in future. Consequently, the results of the Company''s operation are adversely affected as the rupee appreciates/ depreciates against these currencies. There are no carrying amounts of the Company''s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period.

C-2 Interest risk

There is interest risk relating to the Company''s borrowing on which interest is payable.

Principal Raw Material for Company''s products is variety of Stainless Steel. Company sources its raw material requirement from indigenous and international sources. Local market prices are also generally remains in sync with international market price scenario.

Volatility in nickel prices, currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability of stainless steel for the Company. Company effectively manages with availability of material as well as price volatility through.

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy

AS PER OUR REPORT OF EVEN DATE

FOR SUNDARLAL, DESAI AND KANODIA, FOR AND ON BEHALF OF BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS

FRN-110560W

Sd /- Sd /-

^Sd/- (VISHWAMBHAR C.SARAF ) (RISHABH R. SARAF)

^{(MUKUL B}. ^DESAI) CHAIRMAN MANAGING DIRECTOR

^PARTNER DIN: 00161381 DIN: 00161435

Membership No.33978

Sd/- Sd/-

^{PLACE : MUMBAI} (VINOD C. JALAN) (HETAL H. JOSHI)

^DATED : ^{27th May}, ²⁰²⁴ CHIEF FINANCIAL OFFICER COMPANY SECRETARY

---

Mar 31, 2023

1.12 Provisions, Contingent Liabilities and Capital

Commitments

1.12.1 Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

1.12.2 The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.

1.12.3 Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability.

1.12.4 Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.

1.13 Fair Value measurement

1.13.1 The Company measures certain financial instruments at fair value at each reporting date.

1.13.2 Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities.

1.13.3 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.

1.13.4 The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.

1.14 Financial Assets

1.14.1 Initial recognition and measurement

Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.

1.14.2 Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial

asset, the Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit and loss.

1.14.3 Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and recognition of impairment loss on the financial assets measured at amortised cost and debt instruments measured at FVOCI.

Loss allowances on trade receivables are measured following the ‘simplified approach’ at an amount equal to the lifetime ECL at each reporting date.The application of simplified approach does not require the Company to track changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

1.15 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

1.16 Taxes on Income

1.16.1 Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the end of reporting period.

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

1.16.2 Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

1.17 Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity

shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.18 Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or noncurrent as per the Company’s normal operating cycle (determined at 12 months) and other criteria set out in Schedule III of the Act.

1.19 Cash and Cash equivalents

- Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with an original maturity of less than three months, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.20 Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

36. Financial Risk Management Risk management framework

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk, commodity risk and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company''s risk management policies are established to identity and analyse the risk faced by the Company, to set and monitor appropriate risk limits and controls periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risk and mitigating actions are also placed before the Audit Committee of the Company.

The Company has exposure to the following risk arising from financial instruments.

A) Credit risk

B) Liquidity risk

C) Market risk and

D) Commodity risk

A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party fails to meet its financial obligations.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs.2,291.96 Lakhs and Rs.2,119.96 Lakhs as at March 31,2023 and March 31,2022 respectively.

The demographic of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limit and continuously monitoring the creditworthiness of customers to which the Company grants credit in the normal course of business.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

The Company uses an allowance matrix to measure the expected credit losses of trade receivables. The loss rate are computed using a ''roll rate'' method based on the probability of receivable progressing through successive stages of delinquency to write off.

The following table provides information about the exposure to credit risk for trade receivables.

B) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable time.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity management framework for the management of the Company''s short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates. The objective of market risk management is to manage and control market risk exposures within parameters, while optimizing the return.

C-1 Foreign currency risk

The Company''s business is transacted in several currencies. Consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the Company are significantly lower in comparison to its imports.

The Company takes derivate financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and may fluctuate substantially in future. Consequently the results of the Company''s operation are adversely affected as the rupee appreciates/ depreciates against these currencies. There are no carrying amounts of the Company''s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period.

C-2 Interest risk

There is interest risk relating to the Company''s borrowing on which interest is payable.,

D) Commodity risk

Principal Raw Material for Company''s products is variety of Stainless Steel. Company sources its raw material requirement from indigenous and international sources. Local market prices are also generally remains in sync with international market price scenario.

Volatility in nickel prices, currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability of stainless steel for the Company. Company effectively manages with availability of material as well as price volatility through.

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy

AS PER OUR REPORT OF EVEN DATE

FOR SUNDERLAL, DESAI AND KANODIA, FOR AND ON BEHALF OF BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS

FRN-110560W

Sd/- Sd/-

^Sd/- (VISHWAMBHAR C.SARAF ) (RISHABH R. SARAF)

^{(MUKUL B}. ^DESAI) CHAIRMAN MANAGING DIRECTOR

^PARTNER DIN: 00161381 DIN: 00161435

Membership No.33978

Sd/- Sd/-

^{PLACE : MUMBAI} (VINOD C. JALAN) (HETAL H. JOSHI)

^DATED : ^{25th May}, ²⁰²³ CHIEF FINANCIAL OFFICER COMPANY SECRETARY

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Mar 31, 2018

1. CORPORATE INFORMATION

REMI Edelstahl Tubulars Limited is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having Corporate Identity Number L28920MH1970PLC014746. Its shares are listed on Bombay Stock Exchange in India. The Company is engaged in the business of manufacturing of Stainless Steel Pipes and Tubes. The principal place of business of the company is at Tarapur, Maharashtra. The Company caters to both domestic and international markets. It has various certifications likes ISO 9001 and ISO 14001 registration for products thereby complying with globally accepted quality standards.

Terms/ Rights Attached to Equity Shares:

a) The company has only one class of equity shares having par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend, if any, in Indian Rupees.

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Rent receivable in respect of assets given on operating lease in next one year is Rs.60.00 Lacs (P.Y. Rs.60.00 Lacs), beyond one year to five years Rs.300.00 Lacs (P.Y. Rs.300.00 Lacs) and beyond five years Rs.65.00 Lacs (P.Y. Rs.65.00 Lacs).

3. Segment Reporting:

The Company operates in three segments namely (i) Manufacturing of S.S. Pipes & Tubes, (ii) Wind Power Generation and (iii) Trading.

c) Notes

i) Management has identified two reportable segments, namely: -

a) S.S. Pipes & Tubes -- Comprising of Stainless Steel Welded & Seamless Pipes & Tubes.

b) Wind Mill Division -- Comprising of Wind Turbines at Dhule.

c) Trading -- Trading of various goods.

ii) The Segment Revenue in the geographical segments considered for disclosure are as follows: -

a) Domestic -- Comprising of sales to customers located within India and earning in India.

b) International -- Comprising of sales to customers located outside India.

4. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.17.10 Lacs (P.Y. Rs.19.78 Lacs)

5. Payments to Micro, Small and Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there is no overdue payable to MSME units beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

6.. Notes to First time adoption :

1. Security Deposits :

Under the previous IGAAP interest free security deposits (that are refundable in cash on completion of the lease term) are recorded at transaction price. Under Ind AS all financial assets are required to be recognized at fair value. Accordingly the company has fair valued security deposits and the difference between the fair value and transaction value of the Security deposit has been recognized as prepaid rent.

2. Employee Benefit Cost :

Under Ind AS the actuarial gains and losses form part of the remeasurement of the net defined benefit Liability / Assets and is recognized in other comprehensive income. Under IGAAP, actuarial gains and losses were recognized in profit or loss. Consequently, the deferred tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss.

3. Fair Valuation of Investment :

Under IGAAP investment in equity / other instruments were classified into long term and current investments. Long term investments were carried at cost less provision, other than temporary in nature. Current investments were carried at lower of cost as fair value. Under Ind AS, these investments are required to be measured at fair value either through other comprehensive income or through profit and loss. The company has opted to fair value of these investments through other comprehensive income.

4. Deferred Taxes:

Under previous GAAP, deferred taxes were recognized based on profit and loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS deferred tax is recognized by following Balance Sheet approach i.e. tax impact on temporary difference between the carrying value of assets and liabilities in the books and their respective tax base. Also deferred tax has been recognized on the adjustments made on transition to Ind AS.

5. Excise Duty:

Under previous GAAP, revenue from sale of goods was presented net of excise duty on sale. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in statement of profit and loss as an expense.

6. Other Equity:

Adjustments to retained earnings and other comprehensive income have been made in accordance with Ind AS, for the above mentioned items.

7. Optional Exemption availed: Deemed Cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognized in the financial statement as at 31.03.2016 measured as per the previous GAAP and use that as its deemed cost as at the transition date.

8. Applicable Mandatory Exceptions

a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies)

Ind AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

(i) Impairment of financial assets based on expected credit loss model.

b) Depreciation of financial assets and financial liabilities

Ind AS 101 requires first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows the first time adopter to apply the de-recognition requirement in Ind AS 109 retrospectively from the date to the entities choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities to de-recognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provision of Ind AS 109 perceptively from the date of transition to Ind AS.

c) Classification and measurement of financial assets

As required under Ind AS 101 the Company has assessed the classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition Ind AS. Where practicable, measurement of financial assets accounted at amortized cost has been done retrospectively.

d) Impairment of financial assets

Ind AS 101 requres an entity to apply the Ind AS requirements retrospectively if it is practicable, without undue cost and effort to determine the credit risk that debt financial instruments where initially recognized. The Company has measured impairment losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of Cost and effort.

7.. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

(i) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date);

(ii) Reconciliation of Balance sheet as at 31st March, 2017;

(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017;

(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017;

(v) Adjustments to Cash Flow Statements as at 31st March, 2017

The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with previous GAAP.

8. Previous year figures are regrouped / rearranged and reclassified whenever necessary to confirm to current year''s presentation.

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Mar 31, 2016

1. RELATED PARTIES DISCLOSURES: -

I) (a) Key Management Personnel:

Shri. Rishabh R. Saraf - Managing Director

(b) Associates with whom the Company has transactions:

Remi Process Plant and Machinery Limited, Remi Elektrotechnik Limited, Calplus Trading Private Limited, Magnificent Trading Private Limited & Aura Realfinvest Private Limited.

(c) Relatives of key management personnel and other related parties with whom the Company has transactions:

Rajendra Electrical Motor Industries, Remi International, Dholishakti International, Shri V.C. Saraf, Shri R.C. Saraf & Shri Ritvik V. Saraf

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

riguies in biackei represeni pievious yeai liguies.

2. DISCLOSURES IN ACCORDANCE WITH REVISED AS - 15 ON "EMPLOYEE BENEFITS":-

(A) Defined Contribution Plans:

The Company has recognized the following amounts in the Statement of Profit and Loss for the year:

NOTES TO FINANCIAL STATEMENT

3. Payments to Micro, Small and Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there is no overdue payable to MSME units beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

a) Terms/ Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of '' 10/- Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend, if any, in Indian Rupees.

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2015

Current Previous Accounting Accounting Year Ended Year ended 31.03.2015 31.03.2014

(Rs. in Lacs) (Rs. in Lacs)

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

a) Bank Guarantees given by bankers on behalf of the Company. 1,574.21 1,398.19

b) Guarantee given by the Company to Bankers on behalf of associate Company 840.00 840.00

c) Bills Discounted 1,026.56 564.48

d) Claim of Collector 353.47 353.47

e) Central Excise disputed in appeal -

i) Show cause notices pending for Adjudication. 70.94 70.94

ii) Appeal filed by Dept. in High Court against Tribunal order — 207.24

f) In respect of Custom Duty 406.60 33.01

g) Income Tax disputed in appeal 12.68 0.19

1.3 Rent receivable in respect of assets given on operating lease in next one year is Rs. 60.00 Lacs (P.Y. Rs. 38.75 Lacs), beyond one year to five years Rs. 300.00 Lacs (P.Y. Rs. 210.00 Lacs) and beyond five years Rs. 5.00 Lacs (P.Y. Rs. 3.50 Lacs).

2. RELATED PARTIES DISCLOSURES: -

I) (a) Key Management Personnel:

Shri. Rishabh R. Saraf - Managing Director

(b) Associates with whom the Company has transactions:

Remi Process Plant and Machinery Limited, Remi Elektrotechnik Limited, Calplus Trading Private Limited, Magnificent Trading Private Limited & Aura Realfinvest Private Limited.

(c) Relatives of key management personnel and other related parties with whom the Company has transactions:

Rajendra Electrical Motor Industries, Remi International, Dholishakti International, Shri V.C. Saraf, Shri R.C. Saraf & Shri Ritvik V. Saraf

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

d) The overall expected rate of return on assets is based on the expectation of the average long-term rate of return expected on investments of the Fund during the estimated term of the obligations.

3. Payments to Micro, Small and Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there is no overdue payable to MSME units beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

4. As per the requirement of Schedule II to the Companies Act, 2013 w.e.f. 01.04.2014 the company has charged depreciation based on revised remaining useful lives of the assets. As a result, the depreciation charge for the year ended 31st March 2015 is higher by Rs.135.00 Lacs. Further, wherever remaining useful lives of assets have ended, the carrying value as at 1st April, 2014 amounting to Rs. 42.67 Lacs (Net of deferred tax Rs. 20.49 Lacs) have been adjusted against opening balance of the retained earnings.

5. Previous year figures are regrouped / rearranged and reclassified whenever necessary to confirm to current year's presentation.

a) Terms/ Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share. The compnay delcares and pays dividend, if any, in Indian Rupees.

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

Current Previous Accounting Accounting Year Ended Year ended 31.03.2014 31.03.2013

(Rs. in Lacs) (Rs. in Lacs)

a) Bank Guarantees given by bankers on behalf of the Company. 1,398.19 722.62

b) Guarantee given by the Company to Bankers on behalf of associate Company 500.00 665.00

c) Bills Discounted 564.48 562.70

d) Claim of Collector 353.47 353.47

e) Central Excise disputed in appeal 278.18

i) Show cause notices pending for Adjudication. 70.94 -

ii) Appeal filed by Dept. in High Court against Tribunal order 207.24 -

f) Sales Tax disputed in appeal - 1.96

g) In respect of Custom Duty 33.01 33.01

h) Income Tax disputed in appeal 0.19 0.19

2 Rent receivable in respect of assets given on operating lease in next one year is Rs. 38.75 Lacs (P.Y. Rs. 3.00 Lacs), beyond one year to five years Rs. 210.00 Lacs (P.Y. Rs. 15.00 Lacs) and beyond five years Rs. 3.50 Lacs (P.Y. Rs. 0.25 Lacs).

3 SEGMENT REPORTING:

The Company operates in two segments namely (i) Manufacturing of S.S. Pipes & Tubes and (ii) Wind Power Generation. Since revenue, result and assets of Wind Power Generation are below the prescribed criteria, same is not treated as reportable segment.

4 RELATED PARTIES DISCLOSURES: -

i) (a) Key Management Personnel:

Shri. Rishabh R. Saraf - Managing Director

(b) Associates with whom the Company has transactions:

Remi Process Plant and Machinery Ltd., Remi Elektrotechnik Ltd., Calplus Trading Pvt. Ltd., Magnificent Trading Pvt. Ltd. & Aura Realfinvest Pvt. Ltd.

(c) Relatives of key management personnel and other related parties with whom the Company has transactions: Rajendra Electrical Motor Industries, Shri Ritvik V. Saraf

NOTE: Related party relationship is as identified by the Company and relied upon by the Auditors.

5 Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.4.77 Lacs (P.Y. Rs. 432.02 Lacs)

6 Payments to Micro, Small and Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there is no overdue payable to MSME units beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

7 Previous year figures are regrouped/rearranged and reclassified whenever necessary to confirm to current year''s presentation.

8 SHARE CAPITAL

a) Terms/Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of Rs.10/- Each holder of equity shares is entitled to one vote per share. The compnay delcares and pays dividend, if any, in Indian Rupees.

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2013

Current Previous Accounting Accounting Year Ended Year ended 31.03.2013 31.03.2012 (Rs. in Lacs) (Rs. in Lacs)

1.1 Contingent Liabilities not provided for :

a) Bank Guarantees given by bankers on behalf of the Company 722.62 728.49

b) Guarantee given by the Company to Bankers on behalf of associate Company 665.00 665.00

c) Bills Discounted 562.70 312.60

d) Claim of Collector 353.47 353.47

e) Central Excise disputed in appeal 278.18 70.94

f) Sales Tax disputed in appeal 1.96 --

g) In respect of Custom Duty 33.01 33.01

h) Income Tax disputed in appeal 0.19 --

1.2 Rent receivable in respect of assets given on operating lease in next one year is Rs. 3.00 Lacs (P.Y. Rs. 23.23 Lacs), beyond one year to five years Rs. 15.00 Lacs (P.Y. Rs. 82.94 Lacs) and beyond five years Rs. 0.25 Lacs (P.Y. Rs. 0.25 Lacs).

1.3 Segment Reporting:

The Company operates in two segments namely (i) Manufacturing of S.S. Pipes & Tubes and (ii) Wind Power Generation. Since revenue, result and assets of Wind Power Generation are below the prescribed criteria, same is not treated as reportable segment.

1.4 Related Parties disclosures:

i) (a) Key Management Personnel:

Shri. V. C. Saraf - Chairman

Shri. Rajendra C. Saraf - Director

Shri. Rishabh R. Saraf - Managing Director

(b) Associates:

Remi Process Plant and Machinery Ltd., Remi Elektrotechnik Ltd., Calplus Trading Pvt. Ltd., Magnificent Trading Pvt. Ltd. & Aura Realfinvest Pvt. Ltd.

(c) Relatives of key management personnel and other related parties Rajendra Electrical Motor Industries, Shri Ritvik V. Saraf

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

1.5 Payments to Micro, Small and Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there is no overdue payable to MSME units beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

1.6 Previous year figures are regrouped/rearranged and reclassified whenever necessary to confirm to current year''s presentation.

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Mar 31, 2012

A) Terms/ Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of Rs. 10/-each holder of equity shares is entitled to one vote per share. The compnay delcares and pays dividend in Indian Rupees.

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Current Accounting Year Previous Accounting Year Ended 31-03-2012 Ended 31-03-2011 (Rs.in Lacs) (Rs.in Lacs)

1.1. Contingent Liabilities not provided for :

a) Bank Guarantees given by bankers on behalf of the Company 728.49 864.86

b) Guarantee given by the Company to Bankers on behalf 665.00 665.00 of associate Company

c) Bills Discounted 312.60 487.27

d) Claim of Collector 353.47 353.47

e) Central Excise (Disputed in Appeal) 70.94 70.94

f) Subletting Charges - 1.37

g) In respect of Custom Duty 33.01 10.67

h) Income Tax matters - 6.02

1.2 Rent receivable in respect of assets given on operating lease in next one year is Rs. 23.23 Lacs (P.Y. Rs. 21.50 Lacs), beyond one year to five years Rs. 82.94 Lacs (P.Y. Rs. 93.02 Lacs) and beyond five years Rs. 0.25 Lacs (P.Y. Rs. 0.25 Lacs).

1.3. Related Parties disclosures: -

i) (a) Key Management Personnel:

Shri. V. C. Saraf - Chairman, Shri. Rajendra C. Saraf - Director, Shri. Rishabh R. Saraf - Managing Director,

Shri. Ritvik V. Saraf - Executive Director

(b) Associates:

Remi Process Plant and Machinery Ltd., Remi Elektrotechnik Ltd., Remi Metals Gujarat Ltd., Remi Finance & Investment Pvt. Ltd., Remi Sales & Engineering Ltd., Bajrang Finance Ltd., Remi Securities Ltd., Rajendra Finance Pvt. Ltd. Calplus Trading Pvt. Ltd. and Aura Realfinvest Pvt. Ltd.

(c) Relatives of key management personnel and other related parties:

Rajendra Electrical Motor Industries.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

1.4 Payments to Micro, Small and Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there is no overdue payable to MSME units beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

1.5 Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its Financial Statements. During the year ended 31st March, 2012, the revised Schedule VI to the Companies Act, 1956 has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification. The adoption of the revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements.

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Mar 31, 2010

Current Accounting Year Previous Accounting Year

Ended 31-03-2010 Ended 31-03 -2009 (Rs.in Lacs) (Rs.in Lacs)

1. Contingent Liabilities not provided for :

a) Bank Guarantees given by bankers on behalf of the Company 890.31 1072.98

b) Guarantee given by the Company to Bankers on behalf 465.00 677.37 of associate Company

c) Bills Discounted 432.45 285.89

d) Claim of Collector 353.47 353.47

e) Sales Tax (Disputed in Appeal) 116.23 116.23

f) Show Cause Notice in respect of Central Excise 3.18 38.13

g) Central Excise (Disputed in Appeal) 271.81 233.31

h) Subletting Charges 1.37 —

i) In respect of Custom Duty 113.71 20.79

j) Income Tax matters 1.15 —

Loans from State Bank of India (SBI) on Cash Credit account are secured by first hypothecation charge on entire current assets consisting of raw material, semi fin- ished, finished goods and receivables. Extension of first charge on entire fixed assets of the Company consisting of land, building, plant and machinery situated at Tarapur, Distt. Thane and at Brahmanwel, Distt. Dhule. The loans are also guaranteed by two of the directors.

Term loan from State Bank of India is secured by mortgage charge on land & building at Tarapur, land at Dhule for Wind Power Project and hypothecation charge on Plant & Machinery and extension of hypothecation charge on the entire current assets of the Company consisting of Raw

Materials, Stock-in-Process, Finished Goods, Stores & Spares, Other Consumables, Book debts, both present and future. The term loan is also guaranteed by two of the directors. (Repayment in next one year is Rs.422.15 lacs; P.Y. Rs.296.21 lacs).

hi) Loans from other banks are secured by hypothecation of the Vehicles purchased from such loans. Repayment due in next one year is Rs.5.46 lacs (P.Y. Rs.7.99 lacs).

2. Rent receivable in respect of assets given on operating lease in next one year is Rs.4.03 Lacs (P.Y. Rs.9.49 Lacs), beyond one year to five years Rs. 15.00 Lacs (P.Y. 15.00 Lacs) and beyond five years Rs.0.25 Lacs (P.Y. Rs.0.25 Lacs).

3. Related Parties disclosures: -

i) (a) Key Management Personnel:

Shri. V. C. Saraf - Chairman, Shri. Rajendra C. Saraf - Director, Shri. Rishabh R. Saraf - Managing Director, Shri. Ritvik V. Saraf - Executive Director

(b) Associates:

Remi Process Plant and Machinery Ltd., Rajendra Electrical Industries Ltd., Remi Metals Gujarat Ltd., Remi Finance & Invest ments Pvt. Ltd., Remi Sales & Engineering Ltd., Remi Anupam Mixie Ltd., Bajrang Finance Ltd., Remi Securities Ltd. and Rajendra Finance Pvt. Ltd. and Caplus Trading Pvt. Ltd.

(c) Relatives of key management personnel and other related parties:

Smt. Vandana V. Saraf, Rajendra Electrical Motor Industries, Minakshi R. Saraf, Vishwambharlal Chiranjilal H.U.F., Shruti Trust, Rishabh Trust, Ritvik Trust.

(vi) The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

4. Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises Development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

5. The Balance Sheet extract and Companys general business profile as required by Part IV of Schedule VI to the Companies Act, 1956, are given in the annexure.

6. Previous years figures have been regrouped and rearranged wherever necessary to make them comparable with current years figures. As per our report of even date.